WallStSmart

Rent the Runway Inc (RENT)vsRoss Stores Inc (ROST)

VS

Smart Verdict

WallStSmart Research — data-driven comparison

Ross Stores Inc generates 7134% more annual revenue ($22.75B vs $314.50M). ROST leads profitability with a 9.4% profit margin vs 3.4%. RENT trades at a lower P/E of 1.7x. ROST earns a higher WallStSmart Score of 56/100 (C).

RENT

Avoid

30

out of 100

Grade: F

Growth: 6.7Profit: 2.5Value: 8.3Quality: 5.0
Piotroski: 4/9Altman Z: -2.67

ROST

Buy

56

out of 100

Grade: C

Growth: 6.0Profit: 7.5Value: 4.7Quality: 8.0
Piotroski: 5/9Altman Z: 3.10
IV

Intrinsic Value Comparison

Multi-model valuation · Graham Formula

RENTUndervalued (+70.5%)

Margin of Safety

+70.5%

Fair Value

$19.58

Current Price

$4.81

$14.77 discount

UndervaluedFair: $19.58Overvalued
ROSTSignificantly Overvalued (-15.8%)

Margin of Safety

-15.8%

Fair Value

$166.32

Current Price

$216.03

$49.71 premium

UndervaluedFair: $166.32Overvalued

Key Strengths & Concerns

Side-by-side fundamental analysis

Key Strengths

RENT3 strengths · Avg: 9.3/10
P/E RatioValuation
1.7x10/10

Attractively priced relative to earnings

Debt/EquityHealth
-5.7610/10

Conservative balance sheet, low leverage

Revenue GrowthGrowth
15.4%8/10

15.4% revenue growth

ROST3 strengths · Avg: 9.7/10
Return on EquityProfitability
36.7%10/10

Every $100 of equity generates 37 in profit

Altman Z-ScoreHealth
3.1010/10

Safe zone — low bankruptcy risk

Market CapQuality
$70.18B9/10

Large-cap with strong market position

Areas to Watch

RENT4 concerns · Avg: 3.0/10
EPS GrowthGrowth
0.0%4/10

0.0% earnings growth

Market CapQuality
$161.02M3/10

Smaller company, higher risk/reward

Profit MarginProfitability
3.4%3/10

3.4% margin — thin

Return on EquityProfitability
-7.8%2/10

ROE of -7.8% — below average capital efficiency

ROST3 concerns · Avg: 3.3/10
P/E RatioValuation
32.7x4/10

Premium valuation, high expectations priced in

Price/BookValuation
11.2x4/10

Trading at 11.2x book value

PEG RatioValuation
3.112/10

Expensive relative to growth rate

Comparative Analysis Report

WallStSmart Research

Bull Case : RENT

The strongest argument for RENT centers on P/E Ratio, Debt/Equity, Revenue Growth. Revenue growth of 15.4% demonstrates continued momentum.

Bull Case : ROST

The strongest argument for ROST centers on Return on Equity, Altman Z-Score, Market Cap. Revenue growth of 12.2% demonstrates continued momentum.

Bear Case : RENT

The primary concerns for RENT are EPS Growth, Market Cap, Profit Margin. Thin 3.4% margins leave little buffer for downturns.

Bear Case : ROST

The primary concerns for ROST are P/E Ratio, Price/Book, PEG Ratio.

Key Dynamics to Monitor

RENT profiles as a growth stock while ROST is a value play — different risk/reward profiles.

RENT carries more volatility with a beta of 1.29 — expect wider price swings.

RENT is growing revenue faster at 15.4% — sustainability is the question.

ROST generates stronger free cash flow (921M), providing more financial flexibility.

Bottom Line

ROST scores higher overall (56/100 vs 30/100) and 12.2% revenue growth. RENT offers better value entry with a 70.5% margin of safety. Both earn "Buy" and "Avoid" ratings respectively — the choice depends on your investment horizon and risk tolerance.

This analysis is generated from publicly available financial data. Not financial advice.

Rent the Runway Inc

CONSUMER CYCLICAL · APPAREL RETAIL · USA

Rent the Runway, Inc. rents women's designer dresses, clothing and accessories through its stores and online platform.

Ross Stores Inc

CONSUMER CYCLICAL · APPAREL RETAIL · USA

Ross Stores, Inc., operating under the brand name Ross Dress for Less, is an American chain of discount department stores headquartered in Dublin, California.

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